BorgWarner All-Wheel Drive Transfer Case System to Power New Audi Q7

AUBURN HILLS, Mich., Aug. 25, 2005 -- BorgWarner's all- wheel drive transfer case system will be standard on the new Audi Q7, a luxury performance SUV scheduled to debut in 2006.

"BorgWarner TorqTransfer Systems is delighted to add Audi to the list of valued customers who benefit from our advanced technology, quality, and creative solutions to all-wheel drive challenges," said Cindy Niekamp, President and General Manager, BorgWarner TorqTransfer Systems. "We are proud to bring BorgWarner's leadership in all-wheel drive to the owners of this distinctive vehicle."

The BorgWarner all-wheel drive transfer case system on the Q7 enhances vehicle handling and fuel efficiency. A BorgWarner Morse TEC Hy-Vo(R) chain provides quiet all-wheel drive operation. System production will begin during the fourth quarter of this year at BorgWarner TorqTransfer Systems in Margam, Wales. The facility also manufactures synchronizers and four-wheel drive systems for other customers. Representatives of Audi, the Welsh assembly government, various suppliers and local civic officials joined BorgWarner at an event there today celebrating the upcoming launch.

"As Audi celebrates the 25th anniversary of the Audi Quattro system, BorgWarner is pleased to add its all-wheel drive transfer case technology to Audi's premium all-wheel drive product offerings," said Ms. Niekamp.

BorgWarner TorqTransfer Systems is a leading independent global designer and producer of transfer cases and torque management devices for all-wheel drive passenger car, crossover vehicle, sports-utility and light-truck markets. These systems enhance vehicle stability, security, and drivability.

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 62 locations in 17 countries. Customers include Ford, DaimlerChrysler, General Motors, VW/Audi, Toyota, Hyundai/Kia, Renault/Nissan, Honda, Caterpillar, Navistar International, Peugeot, and BMW. The Internet address for BorgWarner is: http://www.borgwarner.com/ .